- What September statistics from Morningstar DBRS show that the delinquency rate among conduit loans dropped compared with the previous month
- Why Nine loans were paid off in the reporting period
- What next Five loans scheduled to mature in September remain outstanding
The delinquency rate for all outstanding securitized loans in Canada ticked down to 1.2% in September from 1.6% a month earlier, according to Morningstar DBRS.
That rate stems from two delinquent loans totaling $45.4m out of 460 outstanding loans aggregating $3.73bn in 17 offerings. The delinquent loans are from the REAL-T 2019-1 deal.
One is a loan on the WSP Place office property in Edmonton with a total delinquent balance of $34.2m. That debt is more than 121 days delinquent. According to a servicer report cited by Morningstar, a forbearance agreement was executed in June 2024, with a loan extension to 2026.
“Additionally, the loan was re-appraised in February 2024 at an as-is value of $14.5 million, representing a 71.4% decline from the issuance value of $51.0 million,” the firm said in its report. “Based on Morningstar DBRS’ further correspondence with the servicer, the servicer has confirmed the continuation of the accumulation of interest shortfalls.”
The other delinquent loan is the $11.1m Group Guzzo Retail Terrebonne loan secured by a retail property in Terrebonne, Qué. The loan is between 90 and 120 past due and the servicer is paying advances. The special and primary servicers are working with the borrower on a payment plan to service the debt and bring the account current.
Nine loans were paid off in September, the largest of which was the Cominar – Office Portfolio loan in the CCMOT 2022-5 offering. The debt, with an issuance balance of $17.3m, was backed by a 211,000 sq ft multitenant office portfolio in Montréal.
Thirteen loans were scheduled to mature in September, and eight of those were paid off. Five loans ranging from $15.9m to $2.1m were not paid off. They are: Regency of Lakefield Retirement loan (REALT 2020-1), Coventry Road Self Storage loan (REALT 2014-1), Lakeshore Drive Retail North Bay loan (REAL-T 2020-1), Coventry Self Storage loan (REALT 2015-1) and Stellar Oakville Office (CMLSI 2014-1).
